The impact of using financial technology on positive financial behaviors

Abstract

This study uses 2013 Survey of Consumer Finances data to explore the impact of financial tech- nologies on households’ positive financial behaviors. After controlling for variables on general capi- tals, financial literacy capitals, and financial resources, we find that only planning technologies (e.g., direct deposit and computer software) are positively related to households’ engagement in positive financial behaviors. In contrast, the impact of transaction technologies (e.g., using ATM card, credit card, phone banking, and computer banking) is negative. Policymakers and financial service pro- viders should assist consumers with better financial tools and help them manage financial resources and behaviors.